Billing System Corp. (3623) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Frontier International, Inc.

Bridge International Corp.

ItoKuro, Inc.

f-code, Inc.

Peers Co. Ltd.

VIS Co., Ltd.

ITbook Holdings Co., Ltd.

Billing System Corp.

Faith, Inc.

Zenken Corp.

Original Engineering Consultants Co., Ltd.

Why is Billing System Corp. ?

High Management Efficiency with a high ROE of 13.57%

Company has very low debt and has enough cash to service the debt requirements

Healthy long term growth as Net Sales has grown by an annual rate of 12.06%

Negative results in Jun 25

INTEREST COVERAGE RATIO(Q) Lowest at 5,086.84
RAW MATERIAL COST(Y) Grown by 7.04% (YoY)
INTEREST(Q) Highest at JPY 2.94 MM

With ROE of 15.18%, it has a very attractive valuation with a 2.53 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -34.74%, its profits have risen by 21.5% ; the PEG ratio of the company is 0.8

Below par performance in long term as well as near term

Along with generating -34.74% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Billing System Corp. should be less than 10%
Overall Portfolio exposure to Miscellaneous should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Miscellaneous)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Billing System Corp. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Billing System Corp.

-34.74%

-0.05

41.10%

Japan Nikkei 225

28.54%

1.11

25.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

12.06%

EBIT Growth (5y)

34.24%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-8.31

Sales to Capital Employed (avg)

1.33

Tax Ratio

31.87%

Dividend Payout Ratio

34.78%

Pledged Shares

Institutional Holding

ROCE (avg)

ROE (avg)

13.57%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.53

EV to EBIT

-25.89

EV to EBITDA

-24.06

EV to Capital Employed

0.79

EV to Sales

-3.74

PEG Ratio

0.78

Dividend Yield

ROCE (Latest)

-3.05%

ROE (Latest)

15.18%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

No Trend

Mildly Bearish

OBV

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

3What is working for the Company

CASH AND EQV(HY)

Highest at JPY 56,224.87 MM

DEBT-EQUITY RATIO (HY)

Lowest at -1,071.3 %

NET SALES(Q)

Highest at JPY 1,139.15 MM

-19What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 5,086.84

RAW MATERIAL COST(Y)

Grown by 7.04% (YoY

INTEREST(Q)

Highest at JPY 2.94 MM

OPERATING PROFIT(Q)

Lowest at JPY 149.55 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 13.13 %

NET PROFIT(Q)

Lowest at JPY 86.72 MM

EPS(Q)

Lowest at JPY 13.79

Here's what is working for Billing System Corp.

Net Sales

Highest at JPY 1,139.15 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Cash and Eqv

Highest at JPY 56,224.87 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -1,071.3 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Here's what is not working for Billing System Corp.

Interest

At JPY 2.94 MM has Grown at 75.31%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 5,086.84

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at JPY 2.94 MM

in the last five periods and Increased by 75.31% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Operating Profit

Lowest at JPY 149.55 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 13.13 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Net Profit

Lowest at JPY 86.72 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 13.79

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Raw Material Cost

Grown by 7.04% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales